It's not easy to judge the economy of Paraguay, because of the huge informal sector. There are various opportunities for business in Paraguay as the country grows wealthier as well as agriculture has greater opportunities in Paraguay.

Many farmers of Argentina have already noticed. The prices of Land in Chaco, have been doubled in the past year. This shows that the land which costs $25 per acre, now costs $50. The investors from America and Europe are buying land in Paraguay.

Here are some reasons why Paraguay attracts people for doing business.

Water

People will find some other renewable energy sources, if the oil runs out. But, they can't replace water with other energy sources anything if the water runs out. Some of the big cities like Mexico and Los Angeles are facing short of water. But Paraguay do not have this problem. It has plenty of water which creates an ideal condition for agriculture.

Electricity

The Itaipu power plant on the Parana River is one of the modern world's seven wonders. This power plant produces 14 Megawatts of power. The energy and power this dam creates per day is equal to 433,000 barrels of oil. This has made Paraguay, the largest exporter of hydroelectric power in the world.

Oil and Gas

Paraguay does not have any natural gas or oil reserves. However, in 2006, the government of Paraguay and Bolivia approved a plan for constructing a pipeline from South of Bolivia to the capital of the country.

Land

Paraguay has an abundance of land and the existing land is fertile. Irrigation in Paraguay is easy. So, no one got around to develop it but the increasing prices of beef, soya and other commodities have changed all this. Many Brazilian farmers are looking to move to Paraguay for cultivation.